In the world of penny stocks, you’re sure to find oodles of great, unknown companies to invest in. But there are also penny stock scams designed to bilk hard-earned cash from investors. And usually you’ll know its hit you after you’ve watched your investment evaporate into thin air!
We know what to look for, and tell you who’s out there pumping stocks using paid promoters.
It’s our job to expose penny stock pump and dump scams…
And we take real pleasure in putting the smackdown on the latest penny stock pump and dump scams.
As you read, you’ll see the big red flags we’ve come across on these companies. And with all the great penny stocks out there… there’s no reason to put a single dime into any of these companies!
This week, we’re exposing a pump and dump scams on: FBC Holding – FBCD
Here’s another scary looking penny stock that has quite the checkered past- jumping from one business model to the next. But that’s not really why they made our list in the first place- they’re here because a known paid stock pumper has sent emails touting their stock!
Red Flag #1: Paid PUMP!
Penny Stock Market Bulls was paid $5,000 for a single day’s promotion!
Here’s the details from the disclaimer for you to read-
com has been compensated $5,000 cash via bank wire to provide one day of marketing and advertising services for FBCD by a non-affiliated third party (BAS1, LLC)
But their not alone…
Some of the other paid pumpers include: Stock Brain, Liquid Pennies, Stock Hunter, VIP Stock Alerts, and Shazamstocks. Needless to say there are quite a few pumpers trying to make this thing pop!
Red Flag #2: Financial Trainwreck
BRZG at least files with the SEC, which makes their reports readable and consistent. But there’s not much else good to report about the company’s finances.
Here’s their numbers as of December 31, 2013…
- -$4,066 cash on hand
- $6.3 million in current liabilities
- $246 k loss for just the last quarter of 2013 – on $0 revenue
I’d say you put money out to buy this stock and you need to ask yourself what exactly you’re buying. A spin on the roulette wheel that this stock might tick higher and you can somehow sell it for a quick profit- that’s about all!
But wait, there’s more…
Red Flag #3: Name Change
FBC Holdings has shown they can’t seem to stock to a single business idea and bring it to fruition. They’ve been in more than one business for sure. Check out some of the companies they’ve been or run:
- FBC Holdings
- Handley Minerals
- Beverly Hills Choppers
- Johnny Fratto Social Club
- Super Rad Toys
- Sports Technology
Finally, and most importantly, just a month ago in April, FBCD terminated their registration with the SEC!
Let’s hope you didn’t buy any shares of this sub-penny stock as a result of the pumper’s emails…
The Wrap Up:
Too many investors get sucked into these nightmare penny stocks scams. They fall for the overly optimistic projections the paid promoters are selling. In the search of easy money, investors lose sight of what a real return should be… and end up holding the bag.
When investing in pumped penny stocks, it’s the ultimate case of “let the buyer beware!”